Initial filings for unemployment benefits in the past week raced to 261,000, the highest level since October 2021.
- The dollar index, DXY, fell sharply on Thursday after the US economy sent a worrying signal. Last week’s jobless claims totaled 261,000, blowing past estimates for 235,000 and above the 233,000 in the week prior. In that context, king dollar packed its royal attire and headed south by 0.7%.
- What are jobless claims and why do they matter? Jobless claims data is one of the most frequent economic indicators, tracking the health of the US jobs market. Issued every week, they keep a tab on how many Americans lost their jobs and filed applications for unemployment benefits.
- This latest figure was the highest since October 2021. Тhat explains the sharp reaction in the US currency. The EUR/USD pumped some 80 pips to $1.0780, and the GBP/USD added roughly 120 pips to eclipse the $1.2550. “Feels good man,” – those short the dollar, probably.